Dental Clinic Bankruptcies and Closures Reach Record High; Survival Efforts Include New Services Like Strength Training – TV Asahi News

The severe business environment for dental clinics indicated by this news highlights the structural challenges faced by the entire medical industry, particularly small and medium-sized medical institutions. Factors such as stagnant medical fee increases, rising costs due to inflation, and a lack of successors are combining to cause a record number of bankruptcies and closures, even among dental clinics that were previously considered stable. In particular, changes in consumer behavior since the COVID-19 pandemic and the search for new revenue streams (such as strength training) suggest the difficulty of sustaining operations solely with existing business models.

From the perspective of medical M&A and business succession, this situation should be viewed as a "no-time-to-wait" signal. Many medical institution managers tend to prioritize their clinical skills and patient relationships, often postponing objective business evaluations and succession preparations. However, as the news indicates, considering business succession before the business deteriorates and falls into excess debt – that is, while "it's not too late" – is key to achieving a more favorable succession, including maximizing the transfer value, maintaining employee employment, and, above all, ensuring the continuation of services to patients.

As a concrete takeaway for readers facing management or successor issues, we strongly recommend "early consultation with specialists." Deterioration of financial health often progresses unseen. Before it appears on financial statements, it is essential to collaborate with specialists such as M&A intermediaries and tax accountants to conduct regular management analyses and develop succession plans, thereby preventing the narrowing of options. Furthermore, while exploring new revenue models is important, careful consideration is needed to ensure they do not pose a risk to the core dental medical services. This news suggests the importance of strategic business succession to balance adaptation to change with organizational continuity.